ELM 7.6 Large exposures

If ELM 7.3.3 R applies to a firm, the firm must ensure that at all times its own funds are of such an amount that:

1. (1)

   no EEA group large exposure exceeds 25% of its EEA groupriskown funds;

2. (2)

   the total of its EEA group large exposures does not exceed 800% of its EEA groupriskown funds.

A firm's EEA group large exposures must be calculated as follows:

1. (1)

   the rules for calculating a firm's large e-money float exposures must be applied to the firm's EEA consolidated group as if it were a single firm subject to the ELM financial rules;

2. (2)

   the exclusions in ELM 3.5.6 R are applied at the level of the firm'sEEA consolidated group; and

3. (3)

   the consolidation must be in accordance with accounting principles generally accepted in the United Kingdom.

If ELM 7.3.4 R applies to a firm, the firm must ensure that at all times its own funds are of such an amount that:

1. (1)

   no UK grouplarge exposure exceeds 25% of its UK groupriskown funds;

2. (2)

   the total of its UK group large exposures does not exceed 800% of its UK group risk own funds.

A firm's UK group large exposure means the same thing as its EEA group large exposure except that references to members of its EEA consolidated group are replaced with references to its UK consolidated group.